Malabar/Mausica MP Dominic Romain has issued a stark warning that insurance companies are preparing to hike premium prices in response to the government’s proposed 0.25% levy on their assets. Speaking during the budget debate in Parliament on October 17, Romain, who also serves as the president of the TT Association of Insurance and Financial Advisors, revealed that he had met with leaders of major insurance firms to discuss the levy. He stated, ‘Based on what was said, preliminary numbers have been crunched, and increases are coming. It’s just a matter of how much and when.’
Romain’s comments came in response to Finance Minister Davendranath Tancoo’s call for companies to share the burden of the new measures and for citizens to resist cost pass-throughs. Romain argued that companies are unlikely to absorb the levy, as they have obligations to their shareholders, customers, and clients. ‘When the government intends to pick the pockets of these entities, you are in fact robbing the citizens as well,’ he emphasized.
The levy, announced by Tancoo on October 13, targets commercial banks and insurance companies due to their profitability, high liquidity ratios, and strong asset growth. Tancoo highlighted that despite these institutions’ financial health, average citizens face exorbitant fees and minimal returns on savings and investments. However, institutions operating under the Special Economic Zones Act will be exempt from the levy, which takes effect on January 1, 2026, and is projected to generate $575 million annually.
Romain also criticized the Finance Minister for portraying financial institutions as predatory, noting that many engage in corporate social responsibility and contribute to the community. He warned that applying the levy to institutions like Republic Bank, which is part of the National Investment Fund, would harm shareholders, including senior citizens relying on investment income for retirement expenses.